ORLANDO, Fla. — Consumer finance is not the most exciting element of dealership operations, but speaker Jared Zimlin of Priority One Financial Services warned those attending his seminar Wednesday at the Marine Dealer Conference & Expo that the government takes compliance very seriously.
“Having a checklist of everything documented is the easiest policy. If you get audited and they ask for documents and you have them, then they typically just move on to the next dealership,” Zimlin said. “If you look at them like a deer in the headlights, that’s when they start digging.”
Zimlin detailed how the 2011 creation of the Consumer Finance Protection Bureau, tasked with increasing scrutiny of consumer financing, has changed the landscape for dealership financing.
Not meeting the requirements of any one of various regulations — the Equal Credit Opportunity Act, the Truth in Lending Act, Red Flag Rules and the Sherman Antitrust Act, among others — can be a costly misstep for a dealership, he said.
A handy resource was posted online, including a printable checklist of must-do paperwork and background on pertinent legislation.